M&A · Tech · Services-Prepackaged Software
Francisco Partners and TPG to acquire New Relic, Inc.
Announced Jul 31, 2023 · Closed Nov 8, 2023
Deal value$6.50BEV $5.87B
Premium29.0%To unaffected price
EV / Adj. EBITDA—6.2x EV / Revenue
ConsiderationAll cash$87.00 per share
Transaction
- Acquirer
- Francisco Partners and TPG
- Target
- New Relic, Inc.
- Buyer type
- Private equity
- Offer price per share
- $87.00
- Enterprise value
- $5.87B
- Status
- Closed Nov 8, 2023
Deal protections
- Break fee (target pays)
- $196M · 3.0%
- Reverse fee (buyer pays)
- $524M · 8.1%
- Go-shop
- 45-day go-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Morgan Stanley
- To the target
- Qatalyst
- Qatalyst fee
- $1.0M
Sector context · Tech
- Comparable deals
- 60 in the prior 24 months
- Premium
- 29.0% vs. 43.8% sector median
- EV / Adj. EBITDA
- Sector median 18.1x
- Break fee
- 3.0% vs. 3.0% sector median
Timeline
- AnnouncedJul 31, 2023
- Proxy filedSep 14, 2023
- Definitive proxySep 25, 2023
- Shareholder voteNov 1, 2023
- ClosedNov 8, 2023
Valuation · fairness opinions
Discounted cash flow$65.75$99.11
Discounted cash flow$56.87$93.16
Discounted cash flow$60.99$88.44
Discounted cash flow$60.12$114.07
Precedent transactions$54.82$91.40
Offer $87.00
Implied value per New Relic, Inc. share by analysis, from Qatalyst.